Global bike sharing market is expected to reach 5,000 M€ in 2019 with a strong relevance of European and US markets. In the case of Europe, although there are systems in place in at least 470 cities, the majority of bike sharing services are public and subsidized by cities since the direct contribution of users is not enough to make the business profitable. The recent appearance of large newcomers in the bike sharing industry relying on “dockless” bikes reduces the administrative burden for operations-start and are outlining a roadmap towards potential profitability without any need of subsidizing. In this line, several “dockless” e-scooter, e-bike and conventional bike companies are running on VC-money for growth purposes. However, it should be noted that experiences in the conventional “dockless” bike-sharing arena reflect this is a risky approach when the business is solely based on capital flow and there is not a solid plan in place to make the service profitable eventually, and several companies have already filed for bankruptcy.
One of the main challenges of dockless sharing services is assuring a wide availability of vehicles, especially with respect to the vehicle’s battery load. In fact, vehicle recharging accounts for the main operational cost in this kind of services.